smartbear's road to debt freedom

smartbear1

Hey there hope someone will find my diary to debt freedom interesting and helpful. I posted some of this info in the credit cards thread, but now i want to start the diary proper.

I want a career change and free myself of the debts. I've had enough of the 'more you earn the more you spend' approach to life. As salaries went up over the years and jobs came and went, I found myself spending more and more and more. Thankfully those habits have gone now. 'Wouldn't it be great to pay cash for everything?' I keep telling myself.

I've balanced transferred where I can along the way, so at least got that part right. The bad news is I started to spend on cards after transferring the debt elsewhere.:mad:

I'm probably facing redundancy next year so I'm not going to touch overdraft at all. Saving that for if I become unemployed to keep min repayments going till I get a job. Got no savings other than a regular amount towards the annual car insurance and servicing costs.

This diary is an incentive to show to myself and others that I can get debt free.

The rest of my life starts today:


Good news first:

Santander Credit Card = 0% till mid Aug 10 (then 17.16%)
Balance = £[STRIKE]135.74[/STRIKE] now £0.00 :j Great feeling making that last payment yesterday!!!!

Credit Limit = £500
O% transfer deal ends then from Aug 17.96% - hoping for a good balance transfer rate from Sep. Will snowball the £135.74 from August at the highest interest card.


The Bad News::(

Tesco Credit Card = 16.9% (use this for purchases/emergencies)
Balance = £[STRIKE]2,675.23[/STRIKE] £2607.53
Credit Limit = £3,650
Min repayment £53.00 (interest £39.39)

MBNA Credit Card (formerly A&L) = 14.88% (frozen to avoid rate jack)
Balance = £3190.83
Credit Limit = £3,500
Min repayment £46.51 (interest £38.88) the min repayment is worked out crazy on this card and some months interest can be only a £1 under the min repayment. Keep watching to see how this changes.

Halifax Credit Card = 6.95%, 6.95% and 8.94% from previous transfers (never spend on this card)
Balance = £6838.67
Credit Limit = £7000
Min repayment £68.11 (interest £41.60)

Sainsburys Credit Card = 6.95% (never spend on this card)
Balance = £3128.31
Credit Limit = £3250
Min repayment £70.38 (interest £17.91) This is the best card with the best payment to interest ratio!!! However, they keep writing to me and lowering my credit limit after every £200 quid comes off. However, at least its moving in the right direction.

I've got some student debts from over 10 years ago, loan (which is deferred so im not counting that in) and a student credit card which was defaulted months after graduating and is repaid at a set amount but there is no interest to pay. I'm happy with these 2 and yes, it's still denial but they are taken care of so I'm not crying right now!!!

Mutual support and advice is welcome. Hope you will join me on my journey?

smartbear1

Got turned down for Natwest 16mth 0% onilne application.:( First turn down ever!!!

Oh well, to be expected really but at least it was a positive move to transfer some of the higher card balances.

Will give it another 6 mths before I try another provider, or might plug on the old fashioned way and just transfer what i can at best rate after i get another card off.

Noticed ebay have got zero fees on any starting price this weekend, so have taken a positive move and started composing listings to go on this weekend. Will take any money i make off a debt, or use it to help me through the month.:o

savingholmes

Welcome to diaryland and good luck with your journey. Keep posting and keep debt busting and one day you will be debt free

smartbear1

Thanks HJolmes. I'm trying to get there and its great others are around to support. So many interesting debt free stories. Want to reach those zero balances and tell the world when I get there!

Smilerwoman

Hi Smartbear,

Welcome to diaryland, and good luck! :j

One thing you said struck a chord with me, because I've been having the same problem.

I've balanced transferred where I can along the way, so at least got that part right. The bad news is I started to spend on cards after transferring the debt elsewhere

Absolutely know what you mean :mad:. I'm v ashamed of myself for doing the same thing in the past. However, now I leave my CC at home, and in the Barclaycard that I have, everytime I pay off a few hundred quid, I ring them up and reduce the limit just so I don't do that anymore.

I'm not the perfect person to give advice, but if I were to say anything, it would be to say leave your card at home. It just gets you out of the habit of seeing something and buying it. It's helped me!

Anyway, good luck and I look forward to seeing how you get on!

smartbear1

Smilerwoman, thanks for your post. I think this diary is really going to help me.

Yes, I only have the one credit card in my pocket for emergencies, the rest are left at home. I never spend on balance transfer cards and I'm happy Sainsbury's keep writing to me and reducing my limit every so often.

In terms of buying, I've saved a bomb joining lovefilm. It's £9.99 a month, but I don't go and buy the latest dvd now at £15.99 every month or the Wii games.

Instead I rent 4 a month from lovefilm. I've got a £20 send it voucher on the way too for joining so that will help when I want to treat myself. :T

I know it's £9.99 that could go towards my debts but its great entertainment and a hell of a lot cheaper than the sky movies package I had. I said goodbye to Sky earlier this year. Just use sky for freeview now cos I get a great reception.

smartbear1

Not a bad week. Inspired by other moneysavers. Set myself a £1 a day challenge. Got a tin and £7 stashed away!!:j

Smilerwoman

Well done on your money saving efforts last week, and good luck for the week ahead :j

smartbear1

Thanks smilerwoman. Checked out your diary again. Seems you struggle with the lunchtime treats too.

Well, I make sure I take a packed lunch for work everyday. My love affair with burgers and fries ended a long while ago. I've re-discovered the supermarket at 8pm - talk about bargain city!!! If i fancy that treat, i buy reduced cakes, put them in fridge and have now gotten over my fear of eating things a day or two after sell by date.

Not a bad money saving week. I decided to bite the bullet and set up a standing order because the A&L card not going down was concerning me. I'm doing a £7 per week payment on that one and to balance the budget i'm taking less suit jackets to the dry cleaners.

Tesco is still the priority debt but it gets a fat snowball wedge chucked at it from next month, of at least £135 a month plus min payment. My signature shows I've made real improvements on this card.

Rather than draw cash frequently, I've started paying for shopping and petrol by debit card. I find it helps me to buy what I need rather than spend what's available in my wallet and head to the cash machine straight after the checkout.

Ebay sales were not all I hoped for, but at least one item sold and the cash should help me through the month.:T Waiting now for another free list day.

smartbear1

smartbear1 wrote: »

I decided to bite the bullet and set up a standing order because the A&L card not going down was concerning me. I'm doing a £7 per week payment on that one and to balance the budget i'm taking less suit jackets to the dry cleaners.

Whoops! A&L card is now MBNA (it used to be Alliance & Leicester).

chevalier

good luck with your debt busting journey. Have you checked that you are also getting the best deals on insurances, and utilities too. Any money not being paid to them can be paid to the debt!
cheers
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